17:00 January 31, 2013PressReleaseComments Off on Self-sufficient dairy farm placed on the market

Press Release – Bayleys

A well developed dairy farm on the north-east coast of the South Island has been placed on the market for sale.Media Release

Self-sufficient dairy farm placed on the market

A well developed dairy farm on the north-east coast of the South Island has been placed on the market for sale.

The 187 hectare Mahunga Farm, 23 kilometres south of Kaikoura, is being marketed by Bayleys Real Estate as an attractive investment to an entry-level dairy farmer, or a group looking for a low-cost and low-output farm to draw healthy profits from. It is flat and well equipped with quality infrastructure. This farm has a sale price of $4.2million (plus GST if any).

Bayleys Canterbury salesperson Ruth Hodges said the current owners invested in Mahunga Farm with a long-term view – focusing on improving pasture quality and developing the farm into a low-input, profitable operation.

“This is an opportunity to purchase a farm where the hard work has already been done in getting the farm to its current operational status. The most recent improvement is a covered feed pad for 500 cows, which provides options for wintering cows at home – cutting down on feed wastage and pasture damage. It also provides a necessary buffer against any summer drying of pastures,” Ms Hodges said.

“It is obvious when you look at the property that everything has been done properly, with great care taken to ensure equipment and infrastructure has been properly maintained. The current owners had a view of remaining here long-term, but for other reasons are having to sell.”
The effluent system, with capacity for 500 cows, has also been upgraded with a two-pond weeping wall storage system, with a stone trap and a holding capacity of 20 days. This operates well within consent requirements.

Other infrastructure includes a well maintained 40-bail Rotorflow milking shed with a round yard designed for 450-cow capacity and easy flow. Stock and shed water is gravity fed to a tank at the dairy shed then through a Dosatron pump to troughs. Ponds are all fully-fenced. Another area the current owners have invested in is improving the soil quality.

“Courses of the bio-certified fertiliser Viafos’ – endorsed by Federated Farmers- have been applied to the soil, and nitrogen levels have been reduced using further specialty products. This has improved the health of the herd. Full records are available on request,” Ms Hodges said.

Approximately 90 percent of the pasture has been re-grassed over the last four years. In addition, each year 10 per cent of the pasture is sown into turnips as a summer crop. There was a 10.5 tonne yield per hectare from turnips last year, with no nitrogen applied.

Six hectares of maize was grown this year at an estimated output of 18 – 20 tonne per hectare. Supplement is harvested at an average of 100 tonne off the platform area and summer crops are grown at an average of 10 – 14 tonne per hectare. The property is 200 metres above sea level and sheltered with manuka, macrocarpa and pine.

A brand-new three bedroom staff house, built by Sunshine Homes, is due to be relocated onto the farm later this month, Ms Hodges added.

“This just leaves the new owner to build or relocate the owner’s/manager’s accommodation, with the present owners advising they would be happy to assist with this if an incoming purchaser wanted this to be completed by the start of next season.”

There is good access and laneways throughout the property, which is subdivided into 44 paddocks, each four to five hectares in size. Two additional paddocks are fully-fenced for calves, and adjacent to a six-bay calf shed which can hold up to 120 calves.

The sale also comes with the option of purchasing 160,000 Fonterra shares.

“This is an outstanding opportunity to buy a profitable, low-input dairy unit set amidst spectacular mountain scenery, yet only minutes from the coast and all the attractions the sea has to offer. Here is a prospect to create a special lifestyle in an enviable part of the country,” says Ms Hodges.
ENDS